20) IAS 28 Investment governs the identification of associates.Which of the following is true?Select one:O a. The investing equity owned by its hare since theincorporation of the investee equityO b. The investor holds greater than 20% but less than 50% ofthe entity power of the investeeOc. The investing entity has some influences over entities inthe same industry.Od. The investor often trades with the invest

Answer:- IAS 28:- Applying the equity approach to investments in partners and joint ventures is…

Answered: 20) IAS 28 Investment governs the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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19- Which of the following accounts includes securities acquired for long-term purposes and capital shares acquired for the purpose of becoming a partner in another business ? a) 23 Other Receivables Account Group B) 24 Financial Fixed Assets Account Group NS) 13 Other Receivables Account Group D) 12 Trade Receivables Account Group
18 - Which of the following accounts includes securities acquired for long-term purposes and capital shares acquired for the purpose of becoming a partner in another business ? a) 12 Trade Receivables Account Group B) 23 Other Receivables Account Group NS) 22 Trade Receivables Account Group D) 13 Other Receivables Account Group TO) 24 Financial Fixed Assets Account Group
Choose the correct.Which of the following does not indicate an investor company’s ability to significantly influence an investee?a. Material intra-entity transactions.b. The investor owns 30 percent of the investee but another owner holds the remaining 70 percent.c. Interchange of personnel.d. Technological dependency.
24- Which of the following statements gives the correct definition of "a security with a certain shape and condition, representing a certain proportion of the capital of a joint stock company and providing its owners with the right of partnership at that rate"? a) Profit and loss partnership certificate B) Participation usufruct certificate NS) Government securities D) private sector bonds TO) stock
Matching type. Match these 4 investments into its corresponding definition below 1. Investment in trading securities. 2. Investment in long-term securities. 3. Investment in associates accounted for using the equity method. 4. Investment in subsidiary Definitions: a. to take advantage of flunctuations of prices in the market b. to exert significant influence over another entity so as to obtain benefits from its operations c. To earn investment income such as interest and dividend and additional source of liquidity such as selling investments as the need arises. d. For trading purposes, for speculative purposes, and to manage risk exposures if used as a hedging instrument e. to exert control over another entity thus enabling the investor to be entitled to variable returns from its involvement with the investee f. to earn rental income and for capital appreciation.
Q21 An investor is generally considered to have significant influence in the investee under which of the following conditions? Select one: a. The investor has more than 50% of the voting power in the associate. b. The investor has more than 20% of the voting power in the associate but does not have more than 50%. c. The investor has less than 20% of the voting power of the associate. d. The investor owns part of the share capital of an associate whether or not there are voting rights attached to the shareholding.
10- Which one of the following is a gain to the partnership firm? a. Withdrawal of capital b. Interest on drawings c. Interest on loan from bank d. Interest on capital
All of the following statements are correct, except, a. An investor may have significant influence even if it has 15% voting power. b. An investor may not have significant influence even if it has more than 20% voting power. c. Under the equity method that is used to account for investment in associates, cash dividends are treated as income. d. Share dividends do not result to a change in the total equity of the investee.
7) Which one of the following is a gain to the partnership firm? a. Interest on drawings b. Interest on loan from bank c. Interest on capital d. Withdrawal of capital
An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE?* a. Both investments may be classified as Investment at Fair Value b. Both investments may be classified as Investment in Associate c. The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value d. The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate
1. For the risk-return principle implies that the riskier a given course of action, the higherthe expected return must be. (T) (F)2. General partners have unrestricted transferability of ownership, while limited partnersmust have the consent of all partners to transfer their ownership. (T) (F)3. Owners must register and pay yearly fees to their State of residence when establishinga sole proprietorship. (T) (F)4. The purpose of financial markets is to bring borrowers and savers together. (T) (F)5. In Financial markets, borrowers and lenders most both be located in the same country. (T) (F)6. Beginning cash balance + cash flow from operations + cash flow from investingactivities + cash flow from financing activities = ending cash balance. (T) (F)7. On a common size balance sheet, total assets are equal to 100%. (T) (F)8. The income statement shows a company's earnings since it has been in business. (T) (F)9. The balance includes information about the company's assets and liabilities. (T)…
1.Identify which of these statements regarding real estate limited partnerships (RELPs) and real estate investment trusts (REITs) is CORRECT. One-REITs are generally liquid and actively traded on national and regional stock exchanges, as well as over the counter. Two-A REIT shareholder may sell as few or as many shares as he or she deems appropriate, whereas a RELP investor must generally sell the entire interest.

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